The Importance of Reviewing Your Credit Report

Step-by-Step Guide to Reviewing Your Credit Report

1. Obtain a Copy of Your Credit Report

South Africans are entitled to one free credit report per year from each of the major credit bureaus—Experian, TransUnion, and Compuscan. You can also subscribe to credit monitoring services like Kudough for regular updates and insights into your credit profile.

2. Verify Your Personal Information

Ensure your name, ID number, address, and contact details are correct. Inaccurate personal information can lead to complications with lenders or disputes later on.

3. Check for Errors

Carefully review your payment history, account balances, and credit limits. Look for:

• Accounts you don’t recognise.

• Incorrect late payments.

• Accounts are listed as open when they’re closed.

4. Dispute Inaccuracies

If you find an error, dispute it with the relevant credit bureau. Here’s how:

• Gather supporting documents (e.g., payment receipts or statements).

• Submit your dispute online or via mail to the credit bureau.

• Follow up to ensure the issue is resolved.

DebtBusters can guide you through this process to ensure your dispute is handled effectively.

5. Review Credit Use and Debt Levels

Evaluate how much credit you’re using compared to your limits. If your utilisation is above 30%, consider reducing your spending or increasing your credit limits to maintain a healthy ratio.
Make sure you take a look at our National Credit Act Guide, too. 

6. Look for Signs of Fraud

Pay attention to unfamiliar accounts or inquiries from companies you’ve never dealt with. If you suspect fraud, report it to the credit bureau immediately and consider freezing your credit file to prevent further unauthorised activity.

Prepare for loan applications

If you're planning to apply for a loan, it's important to review your credit report in advance to identify and address any errors or discrepancies. This will help you get the best loan terms and interest rates possible.

How to Review Your Credit Report

Here are the steps to follow when reviewing your credit report:

Obtain a copy of your credit report

You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year. Alternatively, you can obtain a copy of your credit report from a paid service.

Review your personal information

Make sure that your personal information, such as your name, address, and social security number, is correct and up-to-date.

Check for errors and inaccuracies

Look for any errors or inaccuracies in your credit report, such as late payments, incorrect account balances, or unauthorized accounts.

Dispute any errors

If you find any errors or inaccuracies in your credit report, you can dispute them with the credit bureau. DebtBusters.co.za provides guidance on how to dispute credit report errors.

Review your credit use

Check your credit use and make sure it's within an acceptable range, which is typically 30% or less of your credit limit.

Look for signs of fraud

Keep an eye out for any suspicious activities, such as accounts you don't recognize or inquiries from companies you haven't done business with.

Need debt counselling or consolidation?

Explore DebtBusters' solutions for reducing your interest rates and unlocking cash.

Frequently Asked Questions

1. How often should I review my credit report?

It's recommended that you review your credit report at least once a year or before applying for a loan. You can also monitor your credit report more frequently by signing up for credit monitoring services.

2. What is the difference between a credit report and a credit score?

A credit report is a detailed record of your borrowing and payment history, while a credit score is a numerical representation of your creditworthiness, based on the information in your credit report.

3. Can I get a free copy of my credit report?

Luckily, there are credit monitoring services such as Kudough that can simplify this task for you. They provide insights into how to understand and analyse a credit report, as well as how to improve credit scores and build a credit history.

4. What should I do if I find errors in my credit report?

If you find errors in your credit report, you should dispute them with the credit bureau as soon as possible. You can dispute errors by mail or online, and DebtBusters.co.za provides guidance on how to dispute credit report errors effectively.

How Reviewing Your Credit Report Protects Your Financial Health

Regularly reviewing your credit report ensures your financial data is accurate, helping you avoid costly mistakes, prevent fraud, and secure better financial opportunities. By staying informed and proactive, you can take control of your financial future.

Take the first step today: review your credit report and unlock the power of financial clarity.

Need Help Consolidating Your Credit?

DebtBusters offers tailored debt solutions, including counselling and consolidation, to help you reduce interest rates, manage payments, and achieve financial freedom. Contact us today to explore how we can help.